Military Retirement Pay Tax Subtraction

Full subtraction of military retirement pay from Minnesota state taxable income.

State BenefitMinnesotaTax Benefits

Verified September 30, 2026 against revenue.state.mn.us

At a glance

Benefit type: Tax Benefits — Minnesota
Who it's for: Veterans, Survivors
VA rating needed: No rating requirement
Estimated value: Full retirement pay exemption
Where it applies: Minnesota
Last verified: September 30, 2026

What is Military Retirement Pay Tax Subtraction?

Military Retirement Pay Tax Subtraction is a Minnesota tax benefits benefit for veterans, survivors. Full subtraction of military retirement pay from Minnesota state taxable income. The listed value is Full retirement pay exemption.

Who qualifies

Veterans
Survivors

Available to any veteran
Honorable discharge required
Minnesota residency

How to apply

Apply through the official Minnesota agency.

Open application

Who is eligible

Eligibility

Military retirees receiving retirement pay computed under U.S. Code title 10, sections 1401–1414, 1447–1455, and 12733 (full-time military, National Guard, reserves), and Survivor Benefit Plan recipients (sections 1447–1455 covers SBP). Cannot be combined with the nonrefundable past military service credit.

How to apply for Military Retirement Pay Tax Subtraction

How to claim

Claim the subtraction on Schedule M1M with your Minnesota state tax return.

Open application Verify at official source

Verified information & sources

Last verified: September 30, 2026
Official source: revenue.state.mn.us

Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.

How VetUnlock verifies benefits

Frequently asked questions about Military Retirement Pay Tax Subtraction

Who qualifies for Military Retirement Pay Tax Subtraction?

Military Retirement Pay Tax Subtraction is for Veterans, Survivors; available to any veteran; minnesota residency. See the eligibility details on this page and confirm with the official source before applying.

How much is Military Retirement Pay Tax Subtraction worth?

The listed value is Full retirement pay exemption. Amounts can change — confirm the current figure at the official source linked on this page.

How do I apply for Military Retirement Pay Tax Subtraction?

Apply through the official source linked on this page. A county Veterans Service Officer (VSO) can review your eligibility and help you file at no cost.

Where can I verify Military Retirement Pay Tax Subtraction?

Benefit rules and dollar amounts change, so always confirm current details at the official source linked on this page. A free, accredited county or state Veterans Service Officer (VSO) can also verify your eligibility and help you apply.